he UK Government Needs to ACT NOW TO prevent the energy crisis becoming a DEBT crisis
As the colder months draw in, our cost of living crisis shows no signs of abating, with inflation continuing to rise much faster than wages and benefits. That’s little surprise given how long it has been in the making, driven by the structural inequalities of power and wealth that leave millions of people insecure and exposed to economic shocks.
Even before this crisis, the household debt which weighs down people on the lowest incomes was on the rise. This year, with average household income now due to fall by an unprecedented 1.5-2.25%, that debt crisis will be worsening as people are forced to juggle bills, delay payments, and borrow more to try to make ends meet.
Despite the introduction of the Energy Price Cap Guarantee average bills are set to almost double from £1,277 in March to £2,500 in October. After a decade and a half of falling incomes, this remains too high for a significant proportion of UK households to absorb. That means even more people being pushed into energy debt.